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Reid Supply uses a perpetual inventory system. Their beginning inventory included 15 backpacks at a cost of $20 each. During September, the following transactions occurred.
Reid Supply uses a perpetual inventory system. Their beginning inventory included 15 backpacks at a cost of $20 each. During September, the following transactions occurred. Their chart of accounts used is provided below. Prepare the correct journal entries for the monthly transactions of the company.
Chart of Accounts | Transactions | |||
100 | Cash | 4-Sep | Purchased 70 backpacks at $20 each from Hunter with terms 2/10, n/30 and FOB Destination | |
105 | Accounts Receivable | 5-Sep | The appropriate party for the Sept 4th purchase pays $50 for freight costs | |
110 | Supplies | 6-Sep | Returned 5 backpacks from the Sept 4th purchase and received a credit of $100 | |
115 | Inventory | 9-Sep | Sold 45 backpacks for $35 each to Oliver Books with terms 2/10, n/30 and FOB Destination | |
200 | Accounts Payable | 10-Sep | The appropriate party for the Sept 9th sale pays $40 for freight costs | |
300 | Common Stock | 12-Sep | Oliver Books returned 5 backpacks from the Sept 9th sale | |
400 | Sales Revenue | 13-Sep | Purchased 50 backpacks at $20 each from Swann with terms 3/15, n/30 and FOB Shipping Point | |
405 | Sales Returns & Allowances | 14-Sep | The appropriate party for the Sept 13th purchase pays $45 for freight costs | |
410 | Sales Discounts | 14-Sep | Paid Hunter in full, less discount for outstanding balance | |
500 | Cost of Goods Sold | 17-Sep | Received payment in full from Oliver Books, less discount for outstanding balance | |
505 | Freight Out | |||
510 | Rent Expense |
Date | Account Titles | Ref. | Debit | Credit |
4-Sep | ||||
5-Sep | ||||
6-Sep | ||||
9-Sep | ||||
10-Sep | ||||
12-Sep | ||||
13-Sep | ||||
14-Sep | ||||
14-Sep | ||||
17-Sep | ||||
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